An analysis by the on-chain analytics platform Santiment recently revealed the current sentiment in the Dogecoin (DOGE) and Shiba Inu (SHIB) ecosystems. This has also provided insights into the future trajectory of these meme coins, as a rebound could be imminent.
Shiba Inu Investors Are Bearish On The Meme Coin
In the market analysis, Santiment highlighted how Shiba Inu investors are currently bearish on the meme coin. This is based on the level of social discussion toward Shiba Inu, which has been “extremely low” since late July. This metric is said to have declined throughout this year as the bearish outlook toward Shiba Inu rises.
The analysis noted that this feeling of indifference and frustration among Shiba Inu investors is understandable, considering how smaller retail traders have been offloading their SHIB holdings in a hurry. Data from the market intelligence platform IntoTheBlock also confirms that these retail investors aren’t as bullish as expected. Shiba Inu whales continue to account for almost 60% of the meme coin’s supply.
Santiment stated that, unlike Dogecoin, Shiba Inu’s retail traders are showing “tremendous relief.” The accompanying chart showed that the percentage of supply held by wallets with less than 1 billion SHIB is at its lowest since November 2022. The analysis claimed that this indicates a significant level of FUD occurring on the network, with Shiba Inu whales holding the vast majority of the supply.
The bearish sentiment among these Shiba Inu investors could also be due to the coin’s underperformance this year. Santiment remarked that the meme coin has “essentially performed as a worse-performing Dogecoin in 2024.” The 30-day average trading returns are down at around -1.1%. On the other hand, the long-term returns have declined drastically to -31.7%.
This bearish outlook for Shiba Inu could change soon enough as Bitcoin enjoys a bullish reversal. Data from IntoTheBlock shows a strong positive price correlation between the meme coin and the leading crypto. As such, Shiba Inu is bullish whenever Bitcoin is.
Dogecoin Traders Remain Undecided About Their Next Move
Dogecoin retail traders are said to have remained indecisive about the meme coin throughout this year. Wallets with less than 1 million DOGE hold about 11.8% of the coin’s supply, essentially the same level at the beginning of the year. As such, Santiment noted that there isn’t any sign of FOMO to suggest that these small traders are accumulating Dogecoin.
Meanwhile, although Dogecoin benefitted from the hype around Tron meme coins in August, this wasn’t reflected in its price. Since then, the ratio of DOGE’s discussions against all crypto discussions has dropped to 1.28%. Sentiment is at break-even, which Santiment noted is a good sign that FOMO has quickly settled down. The analysis added that if impatience and FUD come next, it would be a good sign of a turnaround.
Featured image created with Dall.E, chart from Tradingview.com
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